Cove Insurance Lifts the Lid on Pricing For Comparison Websites

Insurance startup Cove is challenging New Zealand entrepreneurs to come to the party and create New Zealand’s first general insurance price comparison website. 

“Comparison websites for general insurance are massive overseas. They allow consumers to quickly get an indicative idea of what it would cost to insure their car, home or contents from a number of brands at once” explains Cove CEO Andy Coon. 

“Our technology is now ready to be connected to third-party websites so our pricing can be quickly reviewed and compared” 

A price comparison website has yet to be established in New Zealand because 80% of the market is held by large Australian brands who have been reluctant to reveal their pricing secrets to third-party websites. 

“The commonly cited concern is that this will result in people only comparing prices, not quality and cover. We feel this can be managed through a well-designed site which focuses on value alongside price”. 

“People don’t necessarily want the cheapest insurance, they want the best value insurance”. 

“Providing transparency in a simple manner will ultimately lead to more frequent insurance reviews, and therefore more switching between providers. Although this is resisted by insurance brands, it can ultimately be better for the consumer” Andy explains. 

In a recent survey by Cove, they found that just 3% of New Zealanders were completely loyal to their current insurance brand, and wouldn’t switch. 

“This indicated that a whopping 97% of Kiwis were apathetic with their current provider.” 

Cove’s car insurance and pet insurance pricing will be available via an API, and capable of providing a quick estimate once a small number of questions are answered. If the estimate is of interest, it can further be refined and purchased on the Cove website. 

“As other insurance brands open their pricing to comparison websites, we hope consumers will be better informed about how competitive their current provider truly is."